India Inc hopes to push for more trade & investment

India Inc is pinning its hopes on making it a two-way exchange that will trigger more trade and investment flow.

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SPS Pannu

Anuradha Shukla

New Delhi

November 5, 2010

UPDATED: November 5, 2010 11:43 IST

With business figuring high on US President Barack Obama's agenda when he comes here, India Inc is pinning its hopes on making it a two-way exchange that will trigger more trade and investment flow between the two countries, create more jobs and spur economic growth.

The large size of the US business delegation and the fact that India's commercial capital, Mumbai, will be the first stop of the US President is expected to set the stage for the economic dialogue.

The Confederation of Indian Industry (CII) is looking for an assurance from Obama that the US market will remain open for Indian exports, and protectionist tendencies would be curbed.

However, Obama's political compulsions following the loss in the US Congressional mid-term polls are expected to cast a shadow on the economic talks.

FICCI president Rajan Bharti Mittal said: "There is a need to focus on the US export control regime that governs high technology sales to India and undertake a review to remove all such US controls that are inhibiting bilateral trade in the sector."

"There is no reason for India to have more controls than those applicable to, say, other G-20 countries," he added. Adi Godrej, Godrej Group chairman, said: "The issue of the US not allowing us access to certain technologies will be a major part of the agenda".

Mittal emphasised the need to move swiftly towards a "totalisation agreement" with the US as Indian professionals working temporarily in the country were required to pay 21 per cent by way of social security deductions without any benefit accruing to them.

It is estimated that the amount being paid every year is a whopping $I billion. India Inc also expects the US to review the policy on charging higher fees for H1B visas.

Swati Piramal, Assocham president, said: "The two countries should set a target of doubling bilateral trade every four years, which would mean a trade level of $220 billion by 2020."

Piramal also favours putting in place an extensive commerce and trade cooperation agreement covering goods and services. She is also in favour of active collaboration between Indian and US universities.

Industry wishlist

CII is looking for an assurance from Obama that the US market will remain open for Indian exports, and protectionist tendencies will be curbed

- India Inc expects the US to review the policy on charging higher fees for H1B visas

- A trade cooperation agreement covering both goods and services

- "The countries should set a target of doubling bilateral trade every four years, which would mean a trade level of $220 bn by 2020" Swati Piramal, Assocham president

Expectations: Medium

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